TMI Blog1978 (8) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... n the difference of the peak unaccounted money from year to year? 2. Whether, on the facts and in the circumstances of the case, there is material in support of the Tribunal's decisions : (a) that the additions in respect of extra profit in each of the years under appeal would be nil in the years in which the addition on the basis of the difference in the peak unaccounted money used from year to year exceeds the extra profit : and (b) that where the extra profit addition is more than the addition on account of the difference in peak credits, the bigger of the two would remain as the addition ? " The assessee firm is a dealer in kirana, supari and foodgrains. For the assessment year 1964-65, the assessee filed the return and decl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ear, and, secondly, that the peak credits should be reduced by the amounts added as extra profits. The AAC rejected the contention. He, inter alia, observed : " The appellant has been introducing and withdrawing the cash by resorting to the device of inflating or deflating the totals merely. This in itself as well as the silence on the part of the appellant regarding the correct state of affairs precludes any reconstruction of the picture. Unless the appellant comes out with full facts that the trade creditors outside the books of account of the earlier year continue in the succeeding year or there has not been fresh introduction of cash in a particular year, it cannot be given the benefit of set-off. As things are, it has failed to prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n that fresh unaccounted money was used ; it could be the same money and the assessee was certainly not to be taxed on the change of investment every time. On the broad proposition of law whether the department was legally competent to make additions on account of unexplained cash credit and by way of extra profits, the Tribunal expressed the view that in appropriate cases it could be so done, but observed that it will be never possible for an assessee to provide direct evidence to show that the additions by way of extra profits have been responsible partly for the use of unaccounted moneys. The Tribunal expressed the view that the assessee's statement that it had no other known source of income and the department's acceptance of that posit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assets and unaccounted moneys used in the business from year to year and observed : " If a particular asset is sold and in its place a new asset is purchased, that does not mean that fresh unaccounted money has been utilised ; it is the same money that has changed face. An assessee cannot certainly be taxed on the change of investment every time. " In the circumstances, the inference drawn by the Tribunal that there was a connection between unaccounted money and excess assets discovered in the business from year to year cannot be said to be perverse or unreal. Clearly there is evidence to sustain it. That is equally true about the other inference drawn by the Tribunal that there was a connection between the unaccounted money and the e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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